Telangana's growing debt raises questions over fiscal sustainability

Experts say the state's economy is grappling with hidden debt, rising welfare costs, and lack of transparency

Recent data from the Comptroller and Auditor General (CAG) of India has validated concerns expressed by Telangana Chief Minister Revanth Reddy that his state is facing a monthly revenue shortfall of ₹4,000 crore. This, Reddy had said, was pushing the state towards “bankruptcy”.

 

According to CAG data, the state reported a revenue deficit — the gap between current expenditure and receipts — of around ₹4,023 crore in the first month of the current financial year. The state government has projected a revenue surplus of 0.2 per cent in the Budget Estimates (BE) for 2025-26. The state’s fiscal deficit is pegged